The Centre for the Promotion of Private Enterprise, CPPE, has welcomed the Central Bank of Nigeria’s decision to ease credit conditions, describing it as a timely shift after months of aggressive tightening.
At its latest meeting, the Monetary Policy Committee reduced the Monetary Policy Rate to 27 percent from 27.5 percent and cut the Cash Reserve Ratio for commercial banks from 50 to 45 percent, while retaining other benchmarks. A new 75 percent CRR was introduced on non-TSA public sector deposits to manage liquidity risks.
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CPPE chief executive Muda Yusuf said the changes reflect improved economic stability following five months of falling inflation. He noted that high interest rates had stifled business expansion, while the new measures should lower borrowing costs, boost credit creation, and improve access to finance, particularly for small and medium-sized enterprises.
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